Guidelines for salary increase for retiring teachers

Section 26 of Republic Act No. 4670 is cited as the statutory basis for issuing implementation guidelines for the one (1) salary grade increase for public school teachers upon retirement.
The Circular is directed at implementing the benefit authorized for retiring teachers under Republic Act No. 4670.

The Circular uses the term “public school teacher” consistent with Section 2 of RA 4670, Section 1 of Rule I of the Rules and Regulations for the Implementation of RA 4670, and amendments or modifications under RA No. 6758.
The Circular covers “incumbents of public school teacher positions” under DECS and similar government educational institutions outside DECS.

The Circular applies to all incumbents of public school teacher positions under DECS and similar positions in government educational institutions outside of DECS.
The Circular applies to teachers who are retiring beginning January 1, 1996.
The Circular covers positions in government educational institutions located outside DECS, including those in the Autonomous Region in Muslim Mindanao (ARMM) for purposes of funding sourcing and budget treatment.

Faculty positions/professorial staff of State Universities and Colleges (SUCs) are excluded from coverage under the Circular.
Non-teaching/administrative positions and similarly situated positions are excluded from coverage under the Circular.

The one (1) salary grade increase takes effect on the last day of service of the retiring public school teacher.
The salary increase is implemented through issuance of a Notice of Salary Adjustment by the duly authorized official.
The teacher-retiree’s salary is adjusted upward by one salary grade at the same salary step of the previous assigned salary grade.

The salary increase is based on moving from the current salary grade to the next higher salary grade while retaining the same salary step.
The Circular provides an example:
- A teacher in Teacher I, SG-10, Step 2 with a salary rate of P72,528.00 per annum (P6,044.00 per month) is adjusted upward to SG-11, Step 2 with a salary rate of P75,312.00 per annum (P6,276.00 per month).

For FY 1996, the implementation requirement for salary adjustment and corresponding increases in terminal leave and retirement gratuity benefits under RA 1616 as amended is sourced from the lump-sum amount authorized for the purpose in the DECS approved budget for 1997.
The lump-sum fund under the DECS budget covers claims of retiring public school teachers under CHED/TESDA supervised schools.
If there is deficiency, savings generated out of their individual budgets for FY 1997 are authorized to be used to cover the additional requirement under the Circular.
For periods after the initial budget provision, the requirement is provided in the respective budgets of agencies concerned.
For educational institutions outside DECS, including those in ARMM, the necessary requirement to cover the benefit is sourced out of their respective budgets during the current year.
For those institutions outside DECS (including ARMM), savings generated out of their individual budgets for FY 1997 are authorized to cover the additional requirement under the Circular, and thereafter the requirement is provided in agency budgets.
For public school teachers opting to retire under applicable GSIS pension laws, the amount/requirement is charged against GSIS funds in accordance with laws.

Cases not covered by the Circular’s provisions must be submitted to the Secretary of Budget and Management for resolution upon recommendation of the DECS Secretary.

The Circular is adopted on 05 June 1997.
The signatories include Ricardo T. Gloria (Secretary, DECS), Angel C. Alcala (Chairman, CHED), Cesar N. Sarino (General Manager, GSIS), and Salvador M. Enriquez (Secretary, DBM).